1. Incorrect combinations between segments of the SCOA National/Provincial road shows July/August 2009 Presented by: SCOA Technical Committee National Treasury

2. BAS Code Structure All 7 segments are included in any one transaction (budget, expenditure, suspense transactions, revenue, journals) Asset Fund Item Project Responsibility Region Objective

3. BAS Code Structure Economic classification is determined by combination between Project, Asset and Item segments Asset Fund Item Project Responsibility Region Objective

4. How does the tool work? The purpose of this tool is twofold 1. Identify incorrect combinations between segments 2. Reflect the correct economic reporting item e.g. ‘capitalised compensation’ as ‘Payments for capital assets - buildings and other fixed structures’ and not current compensation Source = Responsibility download (www.vulindlela.gov.za) – All departments on BASwww.vulindlela.gov.za Rules built in Vulindlela, new field called "ERF" (Economic Reporting Format) correct economic reporting item reflected e.g. ‘capitalised compensation’ reflected as "Buildings and other fixed structures” Note: #NA indicates incorrect combinations between the segments have been used during the posting of transactions “Total expenditure” – in cases where total spending is zero, it will have no effect on classification, but will still show in download e.g. journals, Apr = R100, May = -R100, effect = 0 4

5. What is included in the Responsibility download file? The Responsibility download file contains 110 columns of data which can be grouped as follows: All seven segments according to the Standard Chart of Accounts,, i.e. Fund, Responsibility, Objective, Asset, Item, Project and Region - level 1 to lowest level Financial columns including Original budget, Adjustment budget, Virement, Funds shift, Roll over, Current budget, Total expenditure and Expenditure per month ERF, Functional, Dept, National/Provincial 5

6. Inconsistent Classification Combinations 2009/10 National and Provincial 6

7. 7 Impact of Incorrect Combinations Affects the following areas: In-year monitoring reporting Infrastructure reporting Adjustments Estimate – Virements, roll-overs etc. AFS Asset register Detail analysis on data from BAS e.g. contractors related to infrastructure spending Policy analysis Reporting to TCF, Budget Council, Presidential Coordinating Committee and Parliamentary committees Formal publications e.g. Budget Review, Provincial Budgets and Expenditure Review, MTBPS

8. 8 Inconsistent Classification (Some Findings) 3 Main areas identified: Transfers Assets Buildings and other fixed structure projects NO PROJ S/ALONE CURRENT NON-ASSETS RELATED DEPARTMENTAL AGENCIES & ACCOUNTS PRJ:EXISTING INFRASTRUC ASSETS OTHER MACHINERY EQUIPMENT GOODS AND SERVICES CONTRACTORS (blank) NON-RESIDENTIAL BUILDINGS GOODS AND SERVICES LEASE PAYMENTS

9. Linking Vulindlela Reports back to BAS Reports 9

10. Vulindlela Report 10

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15. Communication to PT/National departments NT provide end of month report Departments correct incorrect combinations on BAS before month closure - journals Dept use data from BAS for monthly reporting NT provide quarterly report (wider than only incorrect combinations) 15

16. 16 THANK YOU Questions?